Pakistan requests for one-year extension in Saudi oil facility
To address the $2-2.5 billion
financing gap identified by the International Monetary Fund (IMF) for the
current fiscal year, Pakistan has formally requested a $1.2 billion Saudi oil
facility (SOF) from Saudi Arabia for the next 12 months, according to official
sources.
A finance ministry handout released
on Thursday did not address this request.
Pakistan has already signed a
staff-level agreement with the IMF under the $7 billion Extended Fund Facility
(EFF), but the deal is still awaiting approval from the IMF's Executive Board.
In addition, the Saudi government is
interested in acquiring a 15% stake in the Reko Diq project through a two-phase
investment, though no transactions have been completed yet.
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Arabia extends $3 billion deposit to Pakistan for an additional year
Pakistan is also seeking $400 to
$500 million from the Islamic Development Bank’s ITFC facility, and has
approached Gulf commercial banks and Standard Chartered Bank (SCB) for an
additional $1 billion loan.
To meet its total financing needs of
$26.2 billion for the fiscal year, Pakistan requires $4 billion in commercial
refinancing. The country is also asking three bilateral creditors to extend $12
billion in deposits held with the State Bank of Pakistan.
During a recent meeting with Saudi
Ambassador Nawaf Bin Said Al-Malki, Federal Minister for Finance and Revenue
Senator Muhammad Aurangzeb emphasized Pakistan's dedication to implementing a
homegrown economic agenda focused on institutional reforms.
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to lend $1bln, roll over further $2bln to Islamabad
Senator Aurangzeb expressed
gratitude for Saudi Arabia's consistent economic support and welcomed Saudi
investors' renewed interest in joint ventures and collaborations with
Pakistan’s private sector.
Ambassador Malki praised Pakistan's
efforts in structural and institutional reforms and reaffirmed Saudi Arabia's
commitment to supporting Pakistan’s economic growth.
Source: Geo TV